Spain consumer goods sales rise on worries over supply amid Ukraine war

MADRID (Reuters) – Gross sales of client items rose 13% in Spain within the wake of Russia’s invasion of Ukraine as provide issues, exacerbated by a partial transport strike, prompted consumers to fill up on staples, market analysis agency Kantar mentioned on Thursday.

Kantar measured the gross sales between March 6 and 20, in comparison with the identical interval a yr in the past, and their complete enhance far outpaced a 5% rise in Spanish mass client merchandise costs in the identical two weeks, that means gross sales volumes had been rising.

“Spain’s consumers are beginning to change their habits and it’s instantly associated to the priority they’re exhibiting concerning the present state of affairs,” mentioned Kantar, including that 90% of customers surveyed had been anxious concerning the affect of the battle that started on Feb. 24.

Grocery store chains throughout the nation have restricted gross sales of sunflower oil, which is usually imported from Ukraine, and the truck-drivers strike created sporadic shortages of staples like milk and flour.

Earlier this week, Spain briefly authorised shops to restrict the sale of some merchandise to forestall sell-outs when markets are beneath stress.

Clients had been shopping for extra packaged meals and drinks, which accounted for 48.4% of a mean grocery basket, in comparison with 44% a yr in the past.

Spanish client costs rose 9.8% in March, the quickest enhance since 1985, preliminary information confirmed on Wednesday.

Younger folks have been significantly onerous hit, the Kantar report confirmed, with customers beneath 35 spending 20% extra on their purchases of primary items than a yr in the past.

In response, customers are more and more seeking to purchase cheaper own-brand merchandise and a few 40% try to cut back their out-of-home consumption, Kantar mentioned.

“Shoppers have gotten extra selective, spending extra time searching for cheaper options,” Juan Aznar, a professor at Barcelona enterprise college Esade informed Reuters.

“Massive outlets with the capability to keep up decrease costs will probably be favoured on this circumstances.”

(Reporting by Corina Pons; Enhancing by Nathan Allen and Bernadette Baum)